we are a subcontractor on a commercial Job we have a signed contract with the builder, however they requested us to perform extra work not included in our contract. they requested it via email and they approved the proposals we sent for the extra work. however they never created an official signed change order. we performed the work and now they refuse to pay for the extra work. we have proof they requested the work to be completed and proof they approved the totals we said they would charge however everything is in email not in official signed change orders. can we legally place a lien on this even though it was not formally approved only informally?...Read More
We are a subcontractor working for a GC on a puplic project .We filed a lien for non payment of change orders authorized(and work supervised) by the GC verbally .We notified the University that we where liening the GC.
See response from GC's attorney....Read More
Is it legal for a general contractor to default on agreed upon amendments to the original contract that were made with text proof, such as labor draw points and change orders for additional work to be done? ...Read More
I am having a disagreement about a proposed change order the GC has submitted to me (related to framing and drywalling 3 ft walls at the top of the stairs). My view, supported by the initial contract scope of work, is that this charge (about $5000) is unwarranted and the work was part of the original scope. If this work is not performed, it will cause other delays of the broader job and be much more expensive for me to address after the rest of the contract is done. My GC knows this and is playing hardball. It makes most sense for me to sign off on the change order and challenge it post-contract (e.g., through small claims court). What is the best way to handle the change order, yet reserve my right to other recourse down the road? I don't want to unncessarily annoy my GC by using any language that would threaten legal action, but I want to ensure that the change order that I sign includes language that reserves my legal options. What are some specific ways I can do this?...Read More
Backstory: In early 2020 we were approached about doing the Electrical portion for a New Construction Maintenance Facility County Project in Texas. The GC had already received Electrical Bids from other Contractors (so he said), and since we were doing another similar project for GC asked if we could do job for $xx,xxx amount? We told him we had to see plans and do take off, cost analysis, etc. GC tried to press Owner/Master Electrician to commit to cost saying that it would be an easy job, but we insisted on seeing plans before committing to anything.
When I got copy of plans I immediately noticed issues. Sheets were missing that contained the One Line Information (Electrical Service Size, Type, Etc.), as well as the Service Site Information which gives details for the Underground Service (Conduit, route, distance, etc.). I informed GC that I needed these sheets before I could give accurate cost analysis, but while he is getting them I will do the Take off on Gear & Lighting.
The next day when I submitted Schedules for The Gear & Lighting to the appropriate vendors, I was contacted back by three separate vendors saying that we did not have the correct plans for this project, the ones I submitted were rejected, and had been updated with new plans. I immediately informed the GC of this claim, and submitted an RFI stating we needed correct plans, as well as missing sheets with One Line.
After about 3 weeks of multiple requests, the GC informed me that these are the plans we are to use, and ONLY these plans. I relayed to my Lighting Vendor the directions, received my Quotes from them, crunched the numbers, without the specs for Site Service & Meter, and submitted Estimate which included only Interior Power and Lighting from the sheets I had. We were informed the the Service Design was having to be redesigned by Power Company, and once approved, we would be provided to issue a Change Order request.
After submitting my Estimate to GC, he asked if I could sharpen my pencil a little, dropping about $3,000 in Estimate? He also made the comment that if needed, I may be able to make a little back from the Exterior Site & Service Change Order that would be submitted when plans became available. I looked it over and agreed, bringing it down to below the figure he had in mind. Contracts issued, signed and returned, material submittals completed, and then the wait.
Six months later, every Sub Contract receives a group email informing us that we all had been using the wrong plans. We were given access to correct plans and the Electrical was still missing the One Line & Site Diagram for the Service. Fortunately, I did not need to alter my estimate since the Lighting Vendor had submitted cost for the correct plans that they had. I did need to change my count on a couple fixtures, but the count was lower, so really didn't affect anything for me.
As work kicked off I made continual requests and reminders that we didn't have the design and layout for the Service, and this could potentially have dire consequences for the projected timeframe due to lead times needed to get Change Order Submitted and Approved, and I would not place orders for Materials until I knew we had approval.
At the end of October 2020 we receive the One Line and Service Site Sheets. We are about 50% complete on the original Interior work. I prepared the Change Order Immediately using EBM (an Estimating Program) and National Averages built into the Program. The Change Order was higher than the original Estimate (original$50k, change order $65k), since Change Order had over 330' of Trenching, multiple runs of 4" Schedule 80 Conduit totaling over 650', #500 CU Wire totaling 330', and #4/0 CU Wire totaling over 720'. Change Order Submitted to GC on 11/3/2020. After a few more changes made by Architect, I submitted the final Change Order on 11/18/2020. Sometime after that we were informed that it had been submitted and was under review.
On December 15, 2020 we were informed the Change Order had been approved and was asked to get materials ordered. I informed the GC that I would need some form of acceptance of Change Order, even if it had to be a Letter of Intent before I could place the orders. During this time there was some talk with Master Electrician/Owner about some of the work on Change Order should have been included in the Original Estimate. I was not included on these conversations, even though I am the Sole Estimator, and only person that worked on the Estimate. The ME/Owner got GC on phone and conferenced me into the call. I reinforced that I did not include any work that pertained beyond the canopy of the building because I did not have Plans which specified the design of service, size, or route. I did not know the length of service conductors from Transformer to Panel inside the building, so therefore could not provide accurate cost.
I was told that there was a sheet which showed potential routing of Utilities (Water, Sewer, & Electrical) in the Civil Drawings section, so I should of included at least part of the Trenching and PVC Conduit in original bid. I told them that I had informed them over and over that I could not provide cost without the One Line & Electrical Site Plan, and the Civil Drawings were not detailed nor accurate to existing conditions when doing the walk through. My Change Order included Scope Of Work which explicitly detailed the Trenching & Conduit in the work.
On 01/21/2021 we were informed that the Change Order was Issued to GC. The same day I received Contract for Change Order in the amount of my Estimate. 4 hours later I received another email stating that the first Contract for Change Order was Voided, and a new Change Order Issued with a $15,452.18 deduction for scope not required. The contention is that since Civil Drawings had an approximate routing of utilities, I should have included in my Original Lump Sum Bid. Therefore, they were taking my itemized Change Order, applying my cost formula per square foot to the Lump Sum Bid, and deducting that as a charge back.
After multiple emails disputing there claims, they are know having no communication with me, and pressuring the ME/Owner to sign the Contract.
Now, if you are still tracking with me, here is the kicker!
Through Open Records available I have discovered that GC Altered my Change Order before submitting to County. He raised my costing from $65,299.24 to $83,325.04, an increase of $18,025.80, then applied the Contracted Allowable Markup for the GC when submitting Change Orders in the amount of $9,585.79, for a total increase of $27,611.59 above my Change Order Amount. Then, if you add in the amount of the deduction which they are trying to impose, the Gross Profit the GC is trying to gain off my $65,299.24 cost is $40,899.37.
Main Question--Is it legal for the GC to take my Change Order Estimate, alter the cost, submit it as if it is my cost to the County, then pocket the difference?
Thank you!...Read More
Say If was working for a builder in scheme contract where appointed on an hourly rate. is the builder able to holding a sum of money and then after a letter of demand claiming they have to carry out reworks.
is the builder entitled to hold this sum and if there is reworks should the contractor be given the opportunity to rectify the works? ...Read More
I hired a GC to build my house. There were many problems on the job. His 1st change orders were very complete. Then he began to stop ALL work if change orders were not paid in full in advance. The change orders now contained the item and amount. Like interior barn doors $6,000 ( cost Breakdown) increased by $1,438.89 to $7,438.89. I reminded him that we changed the contract to included those doors. He agreed, but I went a head paid the change order. He had me verify the doors were correct. They were. Later he sent me a new change order for the interior doors. On it he refunded the $7,438.89 and now he charged $17,565.83. The only changes to the original was 2 doors changed from 3 panel glass to 4 that he said were $39 per door more and Knotty Alder trim that should only cost $2,000 and 1 door changed from a barn door to a swing door because they way it was framed, would not allow a barn door to be used. These items were not mentioned on the change order. Only Knotty Alder Door, case, window case except living room and bedrooms and the $17,565.83. I would like to see the invoice. I price everything and could not come close. How can I get a copy of what I paid for. The door company when I asked said they could not give me a copy and I understood. I asked if they could at least tell me the number of doors. He started counting framed door opening and stopped. The reason is because I had no framed openings. I think I paid for items I didn't receive. What can I do?...Read More
I am a subcontractor in the state of Texas, hired by a general contractor, to complete a flooring installation for a commercial business funded by the state.
For the sake of the following argument, please take my words at face value.
The situation: the owners/GC are exceptionally difficult to please, beyond reason, and created weeks (months even) of delays due to their indecision and lack of communication. We had (FINALLY) reached an approximately 90-95% completion mark, and we were at the "fixing defects and completing punch list items" stage when everything all went to hell.
We offered a few different solutions to the alleged defects and vague punch list requirements ("I don't like it over here, I don't like that section over there, this piece of flooring has too much variation, that piece doesn't have enough variation, etc.). The GC said, in an email, "to standby for a decision." We received no opportunity or clearance to proceed with the job, only several emails putting us on standby and/or delaying any sort of completion, followed by over a month of silence and crickets.
During this timeframe, the GC hired another subcontractor to "fix" our work. (We know this because other friendly subcontractors, also working in the building, told us as much off the record and sent pictures of the altered floor.) In short, the other subcontractor messed it up really, really bad and to the point the floor looks absolutely nothing like we left it. In fact, the majority of our installed flooring was removed or damaged. Honestly, even if we were to fix it, it would basically have to start from scratch, materials and everything, but I digress.
SIX WEEKS WITH NO RESPONSE LATER - The GC sends us a 48-hour Cure Notice, basically stating that we are in default for not completing the work, not holding up our end of the contract, we might be responsible for costs and other subcontractor fees and legal fees and all that jazz. We responded to the Cure Notice the same business day we received it, addressed the claims therein, and again offered a variety of solutions/actions. Crickets again, no communication whatsoever.
Now, over a week after THAT email and our response, the GC leaves a voicemail about trying to reach an amicable solution and how he hopes we'll be honorable people considering how we've held up his project so long. Mind you, this is the first time anyone on that side of the project has responded cooperatively to our attempts at communication.
The GC/Owners have caused inexcusable delays, even perhaps deliberate lack of communication, with a side of shadiness by hiring another company to redo the floor while we still have an active contract. (For the record, we've been paid just about everything except retainage, and our proposed solutions and implied completion would have taken, at most, two more business days once approved.)
What actions are open to us? What state law allows us, in the absence of any other definitions or agreements, to quit and close the contract if something doesn't give?
Secondly, the contract states that the subcontractor (me/my company) is not obligated to warranty the manufacturing of another entity, but it doesn't discuss what or when our "product" is no longer "ours." As I mentioned, the floor has been altered/destroyed beyond our recognition and, officially, without our knowledge or consent if that matters. What law designates when a product stops becoming OUR product and is no longer our legal or financial responsibility? How does a subcontractor fight back in these instances when they're being unreasonably pushed and pulled around and threatened? What law or statute or anything can I reference, beyond my own documentation supporting my claims, when our latest attempt at communication/completion goes sour again, as I'm sure they will?...Read More
I hired a general contractor to redo my bathroom, and do a walk in shower. I requested a signed contract but he ignored my request, but furnished me with a detailed estimate. The floor of the tiled shower was not pitched right, neither was the shower threshold, and water was pooling. He redid it once and still not right. I hired a professional tiler to redo/repair it and it cost $1500. We discovered he had tiled over tile the second time! I also had the tiler replace the threshold at the bathroom entrance which was crooked which cost $290. He had also walked off the job with the doorway unpainted and back splash to vanity not installed.
He only deducted $1000 off of the bill for shower repair. He added costs to the bill unexpected like $100 for installing the toilet holder and mirror. $50 for "adjusting window" that wasn't on the estimate. He had told me he would take $500 off the bill in May for the fact we had 110V for washing machine (a European all in one) and he had priced for 220V. He didn't in the final invoice. He charged us $100 to vacuum up the debris that fell on my downstairs kitchen ceiling (that has a removable panel in case of plumbing issues) when he has "cleanup" as a part of his estimate.
Now he is saying unless he gets the full amount he invoiced me for, he will place a contractor's lien on Monday. I have just been approved for financing for a line of credit but haven't closed yet. I am worried this will mess that up. I planned on sending him a detailed certified letter and paying him the balance after deducting the cost of the tiler, and maint man to finish painting and install the back splash.
I have been told I have the Right of Recoupement. Can he still file a lien without a signed contract? I want to deduct the larger amount for the shower repair, plus the other things I mentioned, but don't want a lien on my hose. He will NOT negotiate at all. What can I do?
I supplied and installed materials on a commercial project. The GC withheld major portions of monthly payments or didn't pay at all. I was unable to pay my workers and vendors. Then the GC excessively back charged my contract for work I could or would not perform due to an unachievable expidited schedule due to the GC poor coordination and management. The GC demanded that I put a large unsatiable work force to meet the expidited schedule with the promise of payment then didn't pay. The GC said that the owner was slow in payment. How do I fight the excessive back charges and collect monies due to my workers, vendors and collect for outstanding extras and change orders?...Read More
I am a sub-contractor working for a General contractor on a puplic project. They have not paid us for several verbal change orders they gave us and supervised the work. We filed a lien against them and notified the University of Ga.
Can I get paid....Read More
we are close to complete the work we were hired to do, we did additional work at request of the owner, when we asked to get paid for it, he refuses to pay us and start complaining about our performance, basically a bunch of lies. Can I file a mechanic lien?...Read More
I've already set up a lien notice for the original contract amount and added 1 approved change order to that total that was approved before project started. we have several more change orders that have been signed and are in progress now that the job is in progress. Can I set up one lien notice for multiple change orders or do i need set up one lien notice for each change order?...Read More
I believe that some DOT Officials and a Construction Firm and the company hired to inspect the work all collude to embellish the legitimate change orders and add some items that should not even be a part of the change order. How do I report this to the FHWA? I have some emails that support this line of thinking and the DOT Officials have tried to persuade me to retire by several avenues....Read More